The Cabinet today approved a $1.37 billion defense budget for fiscal 1972 representing a compromise agreement reached between Finance Minister Pinhas Sapir and Defense Minister Moshe Dayan The fiscal year begins April 1. The budget includes $83.3 million which the Defense Ministry may “borrow” from fiscal 1973. Gen. Dayan said he would try to lop another $42 million off the budget and report back to the Cabinet within a month. Sapir will now begin talks with other ministers aimed at having reduced budgets ready for submission to the Knesset by the end of Feb.
In another area of major expenses, the Cabinet heard forecasts of 1972 immigration raised from 45.000 to 65,000 requiring an additional expenditure of nearly $100 million to house the newcomers. The Jewish Agency has promised to raise half the additional amount through solicitations abroad while the balance is met by contributions and bank loans in Israel. The Cabinet was informed that a meeting of 150 key leaders of the Israel Bond Organization will be held here between Jan. 30-Feb. 2. Their aim is to sell $450 million in Israel Bonds during 1972.
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